Updated
Updated · The Colorado Sun · Jun 29
Colorado PERA to Revise Bonus Policy as Investment Staff Can Earn Up to 225% of Salary
Updated
Updated · The Colorado Sun · Jun 29

Colorado PERA to Revise Bonus Policy as Investment Staff Can Earn Up to 225% of Salary

2 articles · Updated · The Colorado Sun · Jun 29

Summary

  • This fall, Colorado PERA plans to recommend changes to incentive-pay rules after an internal review found its investment compensation may be running ahead of peers.
  • Nearly half of the 38 employees who managed PERA investments since 2020 doubled their salaries through bonuses, while average payouts rose to $294,000 in 2025 from $187,000 in 2020.
  • The scrutiny comes as PERA’s investment team missed benchmarks for a third straight year: the portfolio returned 14.1% in 2025 versus a 16.3% benchmark, and five-year returns trailed 7.6% to 7.7%.
  • PERA still said its broader finances remain on track for 700,000 members, with all five divisions projected to reach full funding by 2048 even as unfunded liabilities rose to $30.1 billion and funding slipped to 69.1%.
  • Lawmakers are weighing intervention after a Colorado Sun investigation, with state Sen. Chris Kolker planning a 2027 bill to bar bonuses when PERA’s investments lose money.

Insights

A rival state pension pays zero bonuses and is fully funded. Is Colorado's high-pay strategy for talent fundamentally flawed?
Colorado's pension copied a controversial high-pay model. With both now under fire, is a bigger crisis looming?